Gives overview of SB 25 (EXHIBITS 1-2). Allows the Treasury Department the ability to
accept donations for awarding scholarships, grants and other incentives to
account owners and their beneficiaries. Excludes Oregon College Savings
Network and Board from public contracting law. Date March 1, 2005 is an
error.

PUBLIC HEARING, SB 34

025

Martin-Mahar

Gives overview of SB 34 (EXHIBITS 3-4). Deals with Oregon College Savings Account. Doubles
the annual cap amount that a taxpayer can claim as an Oregon tax subtraction
for their contributions to the Oregon college savings account to $4,000 for
joint tax returns and $2,000 for other tax returns.

080

Martin-Mahar

Will update numbers on chart on exhibit 3.

084

Vice Chair C. Starr

Asks for clarification on income deduction versus
credit.

090

Martin-Mahar

Responds, The $2,000 is an income deduction, not a
credit.

110

Michael Parker

Testifies in favor of SB 25. See written testimony paraphrased
(EXHIBIT 5).

142

Parker

Notes improvements to the College Savings Network that
the bill accomplishes:

1)Allows the
Network the authority to create scholarships, grants and other incentives
with the goal of increasing awareness of and participation in the program.

2)Aligns the
Network and the College Savings Board with the remainder of the agency in
relation to the public contracting code.

166

Sen. Metsger

Question concerning lines 25-26 in regard to accepting
donations. Why is that needed?

173

Parker

Explains this section.

195

Kate Richardson

Oregon State Treasury sees SB 25 as an outreach to
minorities.

208

Richardson

Begins testimony on SB 34 verbatim (EXHIBIT 6). Oregon ranks near the
bottom of 26 states that offer a college deduction. A deduction of $2,000 per
person is not only fair; it helps offset the rising cost of tuition and other
college-related expenses. Oregonians would save more every year if the
deduction were increased.

247

Parker

Answers Vice Chair Starr’s earlier questions on the
basic mechanics of the bill. Research shows, the higher the deduction the
higher the contribution. Nearly half of those eligible don’t claim the
deduction.

284

Vice Chair C. Starr

Asks how this would affect grandparents who contribute
to their grandchildren’s education accounts.

299

Richardson

They would only be able to claim $2,000 regardless of number
of accounts. Removing the marriage penalty under this bill would increase
that amount to $4,000.

307

Chair Deckert

Committee will look at credits and expenditures over
the next two weeks. Will ask whether each bill helps those Oregonians who
need the most help, and also how to offset proposed budget decreases.

319

Richardson

Treasurer understands the committee has tough choices
to make.

324

Parker

If Oregonians decide not to use the money for
education, they must pay the money back.

PUBLIC HEARING, SB 325

320

Martin-Mahar

Gives overview of bill (EXHIBITS 7, 8) Establishes a new corporate tax credit for an
employer that pays all or a portion of the community college tuition of the
company’s employees.

390

Don Bishoff

Testifies in favor of SB 325 on behalf of Sen. Bill Morrisette,
District 6. SB 325 has bipartisan support. Questions the accuracy of the revenue
impact statement.

422

Bob Cassidy

Testifies in favor of SB 325. See written testimony (EXHIBIT 9), Highlights of the Work to
Learn Bill. Suspects many of the beneficiaries will be English as a Second Language
(ESL) students. Small businesses and low-wage workers are difficult to reach.
If this bill is not used, it will dissolve in four years; if it works,
supporters will be back to request a renewal.

TAPE 74, SIDE A

045

Vice Chair C. Starr

Comments, the cost is for two years, not one year.

051

Cassidy

Admits it will be difficult to project the cost. For
this reason, a sunset clause is necessary.

PUBLIC HEARING, SB 394

058

Martin-Mahar

Gives overview of SB 394 (EXHIBIT 10) Establishes a new personal income tax credit for
taxpayers who pay for community college or public or private college tuition.

086

Sen. Ben Westlund

Commends college students from his district who
sponsored this bill.

093

Kaelyn Smith

Testifies in favor of SB 394. See written testimony (EXHIBIT 11) verbatim. Gives reason
behind supporting this bill. It is designed for students who support
themselves while going to school.

135

Tammy Chappell

Testifies in favor of bill. See written testimony (EXHIBIT 12) verbatim. Former methamphetamine
addict who has gotten her life together. Bill would relieve pressure for her
family and others in recovery.

161

Chair Deckert

Thanks Smith and Chappell for their inspirational
stories.

169

Sen. Westlund

Believes these students have made the strongest case
for this bill. It applies directly to the students who earn the money.

186

Chair Deckert

Was not aware other states provide this credit.

199

Rachel Nolin

Asks committee for support of SB 394. See written
testimony (EXHIBIT 13) verbatim.
State will reap greater benefits in the long-term. Ten years ago she attended
community college for $500 per term for tuition and fees. This year it is
over $1,000.

255

Chair Deckert

Asks if she receives the Oregon Opportunity Grant. A
lot of full-time working students would qualify for it. Lawmakers are looking
to expand it.

269

Ryan Swearingen

Testifies in favor of bill. See written testimony (EXHIBIT 14) verbatim. This bill
encourages individuals in the workforce to further their education. Students
must pay state taxes to receive this benefit.

329

Shane Van Matre

Testifies in favor of SB 394. See written testimony (EXHIBIT 15) verbatim. Works three
jobs to pay his way through college. His parents can’t help him and he
doesn’t want to rely on loans. Financial impact on the state is minimal. His
education will result in a higher paying job.

397

Linda Swearingen

Gives background on how this bill was created in her
political science class. This is truly a student-driven bill.

432

Vice Chair C. Starr

Commends the students for their work with this bill.
It is a small contribution by the state and would be appropriate.

456

Sen. Prozanski

Concurs with Vice Chair Starr. Oregon’s lack of help
to working students is a travesty. This will provide long-term payback.

TAPE 73, SIDE B

033

Sen. Metsger

Comments on bill, lines 6-7. The tax credit should be
targeted toward occupational growth or a degree. Expresses concern the credit
could be misused.

041

Sen. Westlund

Agrees. This is a self-selecting group of students who
are dedicated enough to advance themselves professionally.

062

L. Swearingen

Suggests putting a reporting mechanism in the bill to
review it next legislative session, and perhaps consider a sunset to see if
abuses occur.

069

Sen. Westlund

Fiscal impact on the state is small.

076

Chair Deckert

Comments, he has to “be the bad guy” on tax credit
bills. This bill impresses him, although the committee has to be careful in
providing any tax cuts this session. However, the students have made a very
compelling case that deserves consideration.